How money is defined and used is integral to maintaining a fair and free society.

I love American History and want to point out some hard earned lessons that we seem to have forgotten.

The "Dollar" was in circulation in America long before it was chosen as the official monetary unit by Congress in 1792.

Under common law the Spanish milled dollar was official money.

Apparently "dollar" is the corruption of the nickname of a 16th century Bavarian town where Count Schlick minted silver "Schlickten thalers." (Imagine silicon computer chips being named after Silicon Valley California or a currency called "Friscos.") The approximate size and nickname of the silver coin was used as currency in Brittan, Spain and everywhere they traded.

The Continental Congress' Board of Treasury apparently determined the average Dollar in circulation to be 375.25 grains (troy).

One story is that Hamilton defined the dollar at 371.25 grains(troy)(debased it just a little from 375.25) to move the Spanish dollars out of circulation and keep American dollars free from the threat of a "one world" currency that could be manipulated by foreign sovereigns and potentially adversely affect the monetary value of American's property. (Check your wallet now.)

So the American silver dollar was 371.25 grains (troy) and people traded it for whatever it was worth-- a sound basis for trade.

Hamilton set the value of 1 unit of gold at 15 units of silver e.g. the dollar was a dollar and a gold "eagle" was to be worth 10 dollars.

Paper certificates redeemable for silver could be issued by banks for convenience.

Then the shenanigans began: The civil war and the 17th amendment. 1900 saw the silver standard abandoned for gold which was incrementally debased until the "dollar" was finally set free in 1975.

The most significant event was the switcheroo in 1913 as the Federal Reserve System --a privately owned bank-- wrangled control of the U.S. monetary system and substituted "Federal Reserve Notes" for dollars. (Check your wallet again.)

Of course in the end money only has the value we assign it as individuals. Banking works best for everybody when everybody involved has the same values.

I am really looking forward to Post carbon’s book and chapter on community currency.

For Deets on the history summarized above check out these fine gent's articles:
Edwin Vieira Jr.'s "What is a Dollar"
http://www.fame.org/HTM/Vieira_Edwin_What_is_a_Dollar_EV-002.HTM
and
Richard Giedroyc's "The history of The United States Silver Dollar"
http://www.coinfacts.com/historical_notes/history_of_the_silver_dollar.htm

Note:
"Grains" is an archaic unit of mass made more confusing as apothecaries and bankers use the same unit name for different masses.

Richard Maybury's 2 Laws for a prosperous society:

Do all you have agreed to do.
Do not encroach on other persons or their property.